Pre-tax profit soars by 61% at structural steel group thanks to high demand for large scale projects
Pre-tax profit at structural steel group Severfield-Rowen shot up 61% to £11.81m in its interims results with the company predicting ongoing strong performance due to a bumper order book and buoyant market conditions.
Revenue increased 17% to £130.77m for the first six months to 30 June 2006, up from £112.03m for the same period last year.
The group took steps to improve its margins and this was reflecting in the results. Operating margin for the period increased to 8.7% up from 6.4%.
In its statement to the stock exchange to day, the company also announced changes to its board. Geoff Wright has been appointed as a non-executive director. This summer Wright retired as director of construction at Hammerson where he worked for 27 years.
Peter Levine, chairman said: “Our excellent order book gives us good visibility and we are operating in a buoyant market which is experiencing a high demand for large scale projects.
"With strong demand for the group's products and services, group-wide production efficiencies enhancing margins and with every group subsidiary contributing profitably, we are confident in the group's prospects for the second half and beyond.”